{"id":12549,"date":"2020-03-15T15:04:03","date_gmt":"2020-03-15T12:04:03","guid":{"rendered":"http:\/\/www.tourismworld-seyaha.com\/?p=12549"},"modified":"2020-03-15T15:04:03","modified_gmt":"2020-03-15T12:04:03","slug":"oil-price-war-and-coronavirus-global-recession-is-almost-inevitable","status":"publish","type":"post","link":"https:\/\/www.tourismworld-seyaha.com\/?p=12549","title":{"rendered":"Oil price war and coronavirus: global recession is almost inevitable"},"content":{"rendered":"

\"\"wtten<\/span>:A global recession is now almost inevitable this year, warns the CEO of one of the world\u2019s largest independent financial advisory and services organisations.<\/strong><\/h4>\n

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The warning from Nigel Green, chief executive and founder of deVere Group, comes as global stocks and government bond yields fell after oil prices plummeted by almost 30 per cent on Monday.<\/span><\/strong><\/p>\n

He notes: \u201cOil\u2019s sharpest one-day drop since the 1991 Gulf war has further fuelled the sell-off in global stock markets that started a couple of weeks ago on fears that coronavirus is going to severely damage economic growth.<\/span><\/strong><\/p>\n

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\u201cEvery major stock market is getting hammered as oil prices plunge due to a price war following the breakdown of Saudi Arabia\u2019s oil-cutting alliance with Russia over the weekend.\u201d<\/span><\/strong><\/p>\n

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He continues: \u201cThis is an issue that will not be resolved overnight and it can be expected to have far-reaching consequences.<\/span><\/strong><\/p>\n

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\u201cIt comes as the world scrambles to deal with the market mayhem and economic fallout caused by the relentless global spread of coronavirus.<\/span><\/strong><\/p>\n

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\u201cWith the combination of the implications of the oil stand-off and the outbreak, I now believe that it\u2019s almost inevitable that there will be a global recession this year.\u201d<\/span><\/strong><\/p>\n

<\/h4>\n

Before the oil price drop, last week Mr Green noted: \u201cThe outbreak has already sent the stock market into bouts of volatility not seen since the 2008 financial crisis, severely disrupted global supply chains, shuttered factories, grounded flights, closed attractions and cancelled major events. Entire powerhouse cities in Asia and Europe are nearly shut down. Multinational companies have warned that coronavirus will severely hit profits. Workers are being evacuated and forced to work from home and to avoid travelling.<\/strong><\/h4>\n

<\/h4>\n

\u201cWe can see both supply and consumer demand are already being impacted in key sectors, such as travel and tourism, hospitality, manufacturing and retail, and it is going to extend to others.\u00a0\u00a0<\/strong><\/h4>\n

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\u201cThis scenario is then likely to feed on itself: a lack of consumer confidence and spending, lack of business investment, more job cuts, which means even less spending and demand, which leads to further job cuts.\u201d<\/span><\/strong><\/p>\n

\n

The deVere CEO affirms: \u201cIn times of increasing volatility, investors need to ensure that they remain in the markets with their suitably diversified portfolios – not only to safeguard their wealth, but to create and build it too. \u00a0<\/span><\/strong><\/p>\n

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\u201cAs ever, there will be winners and losers and savvy investors and their financial advisers will be eyeing the opportunities that fluctuations, panic-selling and mis-pricing generate, allowing them to revise and add high quality equities to their portfolios at lower prices.\u201d<\/span><\/strong><\/p>\n

\n

Mr Green concludes: \u201cThe ultimate impact that the oil price war will have on an already vulnerable world economy that\u2019s struggling to cope with the spread of coronavirus remains unknown.<\/span><\/strong><\/p>\n

\n

\u201cHowever, the risk of a short but severe global recession in 2020 has now been heightened dra<\/strong>matically.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

wtten:A global recession is now almost inevitable this year, warns the CEO of one of the world\u2019s largest independent financial advisory and services organisations. The warning from Nigel Green, chief executive and founder of deVere Group, comes as global stocks and government bond yields fell after oil prices plummeted by almost 30 per cent on […]<\/p>\n","protected":false},"author":1,"featured_media":12550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[],"class_list":["post-12549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category---economy-and-technology"],"_links":{"self":[{"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/posts\/12549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12549"}],"version-history":[{"count":0,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/posts\/12549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=\/wp\/v2\/media\/12550"}],"wp:attachment":[{"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tourismworld-seyaha.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}